NFTs have created a dent in the global economy. Their highly accommodating platform has given space for growth and evolution. These factors lend to revenue generation. And NFTs are famously known for their monetary gain distribution. Trading digital assets have become the new norm. More so, monetizing and selling digital objects is now possible due to NFTs. In addition, the NFT is the breeding ground for integrating heavy-hitting enterprises.
The trajectory of NFTs through the years
Digital currencies and crypto
Digital currencies have been around since 1995 as a concept. Its implementation and surge found a new light in the late 2000s, with more people finding multiple use cases for cryptocurrencies in the following years. The emergence of crypto encouraged more people to participate in the sector. Although the working of crypto is highly similar to digital currencies.
Blockchain changed the game. Its online dominance ruled the cryptocurrency and online trade platform, well, even now. The technology gave rise to “Bitcoin,” the world’s first crypto coin. And the rest is history. The use case of blockchain reigned supreme in the digital space. Many digital currencies were introduced during the revolutionary period of the stock exchange and stakeholding investments. This golden age had its ups and downs, yet it managed to stay on top.
The changeover from crypto to NFTs
Around this time, the cryptos had a major breakthrough that no one noticed to pay attention to. The inception of a concept called “colored coins” started circulating approximately in late 2012. Colored coins were used for trading physical assets through the internet, bought by exchanging cryptocurrencies. It didn’t take off. It was a failure in the digital space due to some differences of opinion in its overall use case and its disadvantages.
But, the NFTs had a revival late in 2014. They didn’t do too well for themselves as there wasn’t much exposure in their existence. However, the ball got rolling with a few transactions here and there. The NFT sector primarily started with trading and selling digital art. It modeled itself after the real-world art trade sector in its way of presentation. The first minted and sold NFT was the “Quantum” from digital artist Kevin McCoy in 2014.
What are NFTs & blockchain?
Non-fungible tokens are tokenized assets developed and stored on the blockchain. These assets are individually identifiable and verifiable as unique assets. This is possible due to both their nature of being non-fungible and the unique token serial number they hold. Records also take into account the ownership of the assets to the owner. The security in the blockchain is a tight ship of firewall since it is a decentralized platform. It is nearly impossible to scam or disrupt the asset’s existence once minted in the blockchain.
Minting is the action of recording the asset in the blockchain and authenticating its existence. This helps NFT assets to be unique individuals. An ideal tool for investments. These aspects gave space for NFTs to market themselves as luxury trade assets. The luxury phenomenon arises from the digital assets being scarce and can be verified to precision on their rarity. Ethereum has long been the primary blockchain on which the NFTs are developed. But, as more industries have integrated themselves since, the relevant blockchain for developing a certain NFT has changed. The most common standard for developing the NFTs in Ethereum is the ERC-721.
How to leverage the luxury aspect of NFTs to generate revenue?
This is how the sector has grown to what it is today. Also, the reason for many enterprises to try and pierce the division. Be it a marketing strategy for brands and businesses with merchandise and metaverse elements. And creators and artists can generate revenue by selling their art globally.
The NFT marketplace is where the NFT projects are launched and sold. They are primarily classified into two categories – primary and secondary marketplaces. The primary marketplace is the functional business model for creators and businesses to sell their products. They create or out-source their NFT pieces and develop them based on the relevant blockchain standards. The pieces are then minted and ready for sale. Creators can list the pieces on their dedicated or public marketplace under bid wars or fixed price sales.
The secondary marketplace is the investor and NFT digital art collector space. The investors buy the pieces listed on the secondary marketplace.
How to make revenue-generating investments in the NFT markets?
The trajectory of the NFT projects, the previous and current journey of the marketplace, socials, discord, and quality are all telltale signs that point out an outstanding NFT marketplace. These factors can be categorized as research on the NFT marketplace. The superficial factors so often overlooked are the utilities, roadmap, and the kind of investment an investor needs to make. Art – digital native & digital copies, music, gaming, metaverse, entertainment, and virtual real-estate are some of the arrays of NFTs present. It’s key to know what makes a good short-term and long-term investment. The short burst investments serve the purpose of quick revenue generation and raise the trading factor of the NFT piece.
Looking to the future
The NFTs are the future of the online investment and trading sector. Trade in your dream NFTs at some prominent marketplaces like Beyondlife.club, Opensea, Rarible, Nifty Getaway, etc. And start investing in your next big break.